Property firms in Ho Chi Minh City owe large tax arrears
Wednesday, August 09, 2023, 16:14 GMT+7
Real estate enterprises in Ho Chi Minh City now owe huge tax arrears with many of them incurring bills of over VND1 trillion (US$42 million) each, according to the Ho Chi Minh City Tax Department.
The department’s newly-released data showed that tax arrears in Ho Chi Minh City reached VND53 trillion ($2.2 billion) as of June this year, up 16.6 percent over the end of last year.
Real estate firms accounted for a large part in the outstanding tax liabilities.
In particular, the 21st Century International Development Co. Ltd. owed a staggering VND6.1 trillion ($256 million), while Thuan Viet Trading and Construction Co., Ltd. has yet to pay taxes valued at nearly VND2.7 trillion ($113.4 million).
The tax arrears of Golden Hill Investment Corporation and Song Tien Real Estate Corporation reached VND1.3 trillion ($54.6 million) and VND1 trillion ($42 million), respectively.
The Ho Chi Minh City Tax Department issued nearly 45,500 decisions to coerce tax debtors to pay tax arrears and collected over VND12.7 trillion ($533.1 million) in the first half of this year, equal to 94 percent of the figure in the same period last year.
The taxman also froze tax debts worth nearly VND4.7 trillion ($197.3 million) for some 120,000 individuals in the six-month period.
During the period, the municipal People’s Committee made 329 decisions to clear debts amounting to VND499.9 billion ($21 million) for more than 17,200 taxpayers, while the tax agency wrote off tax arrears of VND78.8 billion ($3.3 million) for 12 individuals.
The Ho Chi Minh City Tax Department attributed the increasing tax arrears to the impact of the COVID-19 pandemic lasting from previous years and the economic downturn.
The department will enhance the encouragement and coercion of taxpayers to fulfill their obligations as well as publicize a list of enterprises failing to pay taxes on time in the mass media.
The tax authority has published such lists before, which included giant firms.
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